Class Notes (839,590)
Canada (511,419)
Marketing (1,395)
MKT 100 (974)
benbarry (2)
Lecture

Chapter 8 Marketing.docx

6 Pages
92 Views

Department
Marketing
Course Code
MKT 100
Professor
benbarry

This preview shows pages 1 and half of page 2. Sign up to view the full 6 pages of the document.
Description
Chapter 8 Marketing Product: Anything that is of value to a consumer and can be offered through a marketing exchange. Includes: goods, services, places, ideas, organizations, people, and communities. The first P in the marketing mix. Why do firms create new products? - provide value to firms and customers – how much value? Depends on how new they really are - Innovation: The process by which ideas are transformed into new products and services that will help firms grow; without innovation, firms could only market the same product to the same customers or to another market with similar customers Changing Customer Needs - new products satisfy the changing needs of current and new customers so they do not get bored of the current product - eg Dove just sold soap, but than expanded to other products to keep customers interested in the brand - sometimes firms create products that customers never knew they needed, eg toothpaste - or make take a product and adjust it to make it more interesting/better Market Saturation - eg sneakers or cars – companies don't offer the same models every year because people wouldn't buy the same if the one they have now works fine – so they change and upgrade frequently Managing Risk through Diversity - the more kind of special k eg, the better if can achieve results Fashion Cycles - industries that rely on fashion trends and experience short product life – eg apparel, books, arts, , movies, software – most sales come from new products - you wouldn't buy more books if the same are available all the time Innovation and Value - Pioneers/Breakthroughs: New product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market, eg new-to-world-products - They require a higher level of learning from consumers and a lot more benefits – eg the internet - Pioneers are first movers: the first to create a market or product category, making them readily recognizable to consumers and thus establishing a commanding and early market share lead; eg sony Walkman and than apple ipod - Not all pioneers succed- often times imitators learn from the pioneers weakness and gain advantage in the market; also they spend more time promoting the product versus the actual brand – making it easier for followers; it is often more expensive and has a less nice design because it was the first - Most new products fail because: not enough benefits for the customer, too complex, bad timing - new-to-the-world products are not adopted by everyone at the same time. Rather, they diffuse or spread through a population in a process known as diffusion or adoption of innovation Adoption of Innovation - Diffusion of Innovation: The process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters; - helps marketers understand the rate at which consumers are likely to adopt a new product or service - helps identify potential markets for their new products or services and predict their potential sales - Purchasers can be divided into five groups according to how soon they buy the product after it has been introduced Innovators: Those buyers who want to be the first to have the new product or service; enjoy taking risks, are regarded as highly knowledgeable, and are not price sensitive. Early Adopters: The second group of consumers in the diffusion of innovation model, after innovators, to use a product or service innovation; generally don't like to take as much risk as innovators; act as opinion leaders who spread the word to the next big groups Early Majority: A group of consumers in the diffusion of innovation model that represents approximately 34 percent of the population; members don't like to take much risk and therefore tend to wait until bugs are worked out. Late Majority: The last group of buyers to enter a new product market; the product has achieved its full market potential Laggards: Consumers who like to avoid change and rely on traditional products until they are no longer available.  and than there are people who simply do not buy the product (not part of the bell curve) Using the Adop
More Less
Unlock Document

Only pages 1 and half of page 2 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit